Escrow & Title

In Wyoming, an 'at-risk' closing situation arises when:

AThe parties are at risk of personal injury at the closing table
BThe escrow agent disburses funds before recording is confirmed, creating risk that the title could be impaired after disbursement✓ Correct
CThe lender is not satisfied with the appraisal at closing
DThe seller has undisclosed liens at closing

Explanation

An 'at-risk' or 'pre-recording disbursement' closing occurs when funds are disbursed before recording is confirmed. If a higher-priority instrument is recorded in the gap between disbursement and recording, the transaction could be impaired. Best practice is to wait until recording is confirmed before disbursing.

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